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Limitations of Planning (7.External Factors. ((c) Business Environment.…
Limitations of Planning
1.Lack of Reliable Data
Quality of Planning
depends upon
reliability data
supplied by planners
researches to
management.
reduce utility
Planning.
2.Time Consuming Process
Utility reduced
plans not
implemented in time.
Decision making
may get delayed
where there
need immediate
action.
delay may
result in loss
of opportunities.
3.Expensive
heavy cost
involved in
implementation,
small concerns
find difficult
make a widely
acceptable &
comprehensive plan.
long term
planning
still considered
as luxury
for many
small firms.
5. Resistance to Change
People generally
do not like
charges.
they want
stick to
old traditions
&old customs.
their unwillingness
adopt new ideas
results in failure
of implementation
plans .
4.Reduce Initiative of Employees.
Planning provides
strait jacket
for subordinates
and makes
managerial
work more
diffiucult.
6.Sudden Emergencies.
case emergent
situations
need is
quick action
&advance planning.
emergencies
cannot be
anticipted
with greater
accuracy
reduce
importance
of planning.
7.External Factors.
(c) Business Environment.
Frequent changes
in environment
disturb
planning process.
(d) Trade Unions
planning process
become
ineffective
there change
in attitude
trade union
& employee
(b) Political Situation.
change
type&
ideology of
government
adversely affects
planning process.
(a) Government Policies.
with change
in policy
of government like
fiscal policy
monetary policy
industrial policy
plans may
adversely affected.
8. Biased Thinking
like & dislike
of Planners
greatly reflected
in planning
even if it
not done
deliberately.